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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (59855)	9/21/2017 10:22:20 AM
From: E_K_S	Respond to of 78751

distribution income is the deferred income from the dividends. That lowers your cost basis as you never paid tax on these dividends (thus deferred distribution income). The other component in calculating you cost basis is the price you originally paid for the shares. In my case, I have some high cost shares that are greater than the deferred distribution income, so the net adjustment s/d show a loss (ie harvest my loss) but by buying some low cost shares to replace those I sell, I will maintain my same total position. It's just standard portfolio 'cost basis' management I do especially when I can lower mu avg cost basis for a company I still like. EKS